Mike and Brian McMenamin talk about the extra millions that will go into the heavily damaged old Elks Temple that they're redeveloping into a restaurant, hotel, brewery and performance space. Peter Haleyphaley@thenewstribune.com

Mike and Brian McMenamin talk about the extra millions that will go into the heavily damaged old Elks Temple that they're redeveloping into a restaurant, hotel, brewery and performance space. Peter Haleyphaley@thenewstribune.com

Both parties have agreed it was in Tacoma’s interest to seek other developers for the renaissance of Old City Hall, The News Tribune confirmed Thursday.

Tacoma has sought to finalize agreements with the Portland-based developers throughout the past year, but company representatives have said they “were not in a position to go ahead” with Old City Hall, said Elly Walkowiak, the city’s business development manager.

“They indicated they are still very interested,” she said. “They love that building, but the timing right now isn’t going to work.”

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McMenamins’ project to rehabilitate the nearby Elks Lodge into a 45-room hotel is still on track, for now, with construction to begin by the end of this year, chief financial officer Chris Longinetti said Thursday.

“We completely understand what the city needs to do on Old City Hall,” Longinetti said. “We are supportive of the city as far as getting that property into productive use.”

The company always made clear it wanted to complete the Elks development before starting on Old City Hall, which it envisioned becoming a 60-room hotel and entertainment venue, much like its other properties across the Northwest.

McMenamins put the Old City Hall project on pause last year as it sought more investors to rehabilitate the Elks Lodge. For months, the city has quietly shopped Old City Hall to developers and investors.

“(McMenamins) said if others demonstrate interest and you are interested in working with other developers that would be all right with them,” Walkowiak said.

Though some have toured the building, so far no other developer has suggested a greater commitment, she said.

The city bought Old City Hall in 2015 for $4 million after its previous owner, George Webb of The Stratford Group, allowed the building to fall into disrepair — so much so that the city designated the landmark, built in 1893, as a “dangerous building.”

“Because of the port’s involvement (in building the hotel’s shell), that will give us the capacity to launch Elks” at the same time, Longinetti said in March.

Cost estimates for the Elks Lodge’s renovation climbed as the company learned more about the building and its condition. The company had once thought renovating the lodge would cost around $25 million.